INTERNATIONAL – British Airways parent IAG on Thursday warned of a fall in annual profits citing a pilots strike and weaker performance by budget carriers Vueling and Level, hitting shares in Europe’s third largest airlines group.
Recurring operating profit will fall €215 million (R3.5 billion) to €3.27 billion this year, IAG said, after strikes at British Airways grounded thousands of flights earlier this month.
A September 9 to 10 strikes dealt a heavy blow to British Airways, still reeling from a third major computer failure in two years, which disrupted operations in August.
Pilot unions called off a second strike this week but said that industrial action may resume unless progress is made on a pay dispute.
“Any further industrial action will additionally impact IAG’s full-year 2019 operating profit,” the group cautioned.